Despite bullish bets, this stock's chart 'looks like death'

After a rough start to the year, some traders are banking on a turnaround for shares of Goldman Sachs.

U.S. and European bank stocks have sold off severely this year amid investor concerns over persisting low interest rates and exposure to energy loans. In the U.S., Goldman Sachs has been one of the worst bank stocks of the year, having fallen 15 percent year to date.

But on Thursday, one trader bought 8,000 of the April 165-strike calls for $1 per share. This is an $800,000 bet that Goldman Sachs shares rise above $166 by April expiration, or 8 percent above where the stock traded on Friday.

CNBC contributor Mike Khouw noted that while the trade expires before Goldman Sachs reports first-quarter earnings, the trader may be looking to JPMorgan's earnings as guidance for the rest of the banking industry.

Read MoreThe $1 million bet that a solar stock hits new highs

"It does capture JPMorgan's earnings, and that might actually be able to be the bellwether, essentially, for Goldman Sachs," Khouw said Thursday on CNBC's "Fast Money."

Khouw said that while the beleaguered stock looks cheap right now, the recent performance doesn't lend itself well to any optimism.

"When you take a look at a price chart ... it kind of looks like grim death," he said.

Options Action Newsletter:

Sign up to receive exclusive Options Action content. Each month you'll receive an exclusive message from host Melissa Lee and insight directly from one of the members of our Options Action panel. Keep your pulse on the market with the Options Action newsletter.

Please enter a valid email address
To learn more about how we use your information, please read our Privacy Policy.

Contact Options Action

  • Showtimes

    Fridays, 5:30p ET
    Saturday, 6a ET
    Sunday, 6a ET
  • Melissa Lee

    Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

Sponsored Related Links

More on thinkorswim by TD Ameritrade

  • Make sure you’re always keeping up with the market with up-to-the-minute news and breaking stories. Move on possible breakout stocks and options with potential opportunity. Plus, get in-depth analysis on futures and forex in one seamless, integrated experience. Join TD Ameritrade and trade commission-free for 60 days + get up to $600 cash.